KYIV, Ukraine, September 8, 2011 /PRNewswire/ —

Restructuring and following privatization of Ukraine’s state oil and gas company Naftogaz are expected to bring additional USD 10-12 billion to the Ukrainian budget, according to the Minister of Energy and Coal Industry Yuriy Boyko. The funds will be invested into energy efficiency and intensification of gas extraction in the country.

Ukraine is set to finalize restructuring of NAK Naftogaz before the end of the year. As a result, over four newly created companies are expected to be privatized by the end of 2012. One of the options considered by the government is listing the new gas and oil companies through IPOs, stated the minister at the briefing of the Cabinet of Ministers of Ukraine. It was also noted that in the course of Naftogaz restructuring its credit obligations will be restructured accordingly.

The plan to restructure Naftogaz goes along the lines of Ukraine joining the Energy Community Treaty. Also, Ukraine strives to form its domestic gas market in accordance with the EU standards.

“On February 1, 2011, Ukraine became a full member of the Energy Community. Consequently, Verkhovna Rada (Ukrainian Parliament. – Ed.) passed a law on adjusting national legislation and our energy companies operations to fit European regulations. …The division of gas transporting, purchasing, and selling functions is a key requirement. We will finish this process before January 1, 2012,” highlighted the minister.

Another requirement under the Treaty is to secure non-discriminatory access to the gas network. This will be achieved by turning over the control of gas transportation and gas distribution to legally independent entities.

“Ukraine’s presence on the internal energy market of the EU will create a solid ground for investment activity and intensify reformation of the energy sector of the country,” commented the energy minister. The money raised from restructuring of the national oil and gas monopolist will be used to implement the energy efficiency programs as well as to increase domestic gas production in Ukraine, assured the minister.

SOURCE Worldwide News Ukraine